Ask Joe Hete
HomeAbout JoeSign Up for UpdatesAttend Annual Meeting
Question 5
Where’s the synergy in having three separate operations perform identical tasks?

In a presentation given at the BB&T Conference, ABX Holdings President and CEO Joseph Hete outlines “capturing cost-savings from synergies” as a key strategy for business development.1 ABX Holdings, however, currently owns three separate operations - Capital Cargo International, Air Transport International, and ABX Air, Inc. - which Hete opposes combining, and have virtually identical business models. Where’s the synergy when there are:

  • Three certification processes
  • Three maintenance operations
  • Three marketing and sales teams
  • Three HR departments
  • Three of just about everything!
Webster’s defines synergy as “a mutually advantageous conjunction or compatibility of distinct business participants or elements, as resources or efforts.” Hete loves to talk about synergy, but we’re not sure he really understands what the word means.

dm

1. ABX Holdings, Inc. PowerPoint Presentation at the BB&T Conference. February 2008.

We have our plan, Does Management have theirs?